Philip Hammond has said that Britain may transform its economic model into a tax haven if the EU fails to provide an appropriate market agreement after Brexit.
A German newspaper, Welt am Sonntag, stated Hammonds views that if Britain were closed off from the European markets after leaving the EU it would consider abandoning a European-style economy and become ‘something different.’
‘Most of us who had voted remain would like the UK to remain a recognisably European-style economy with European-style taxation systems, European-style regulation systems etc. I personally hope we will be able to remain in the mainstream of European economic and social thinking. But if we are forced to be something different, then we will have to become something different.’
He continued to explain ‘British people are not going to lie down and say “too bad we’ve been wounded”. We will change our model and we will come back, and we will be competitively engaged’.
Hammonds interview with Welt am Sonntag emphasised that immigration restriction is a key focus for the British Government during negotiations. Unlike previous statements from the chancellor, there were no guarantees that highly skilled workers from the EU would still be allowed to settle and work in the UK.
Allegations that the UK and US were ‘turning their back to the world’ were strongly rejected. ‘I can’t speak for what is going on in the US, that is a different political movement. But in my judgement, it would be a mistake to read the Brexit vote as being part of the same strand of thinking that has formed the US.’ Said the British representative.
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